According to digopaul, contribution is the action and effect of contributing (paying a tax, contributing voluntarily with an amount for a certain purpose, helping others). The term has its origin in the Latin word contributĭo.
A contribution, therefore, can be a tribute that a taxpayer must pay for obtaining a benefit or for the increase in the value of their assets from the execution of public works. For example: “Sir, we have detected that you are not up to date with your contributions”, “Last month I had to pay a contribution of 200 pesos for the underground works”, “The candidate promised a reduction in contributions”.
The tax that must be paid when there is an increase in the value of one’s own assets due to the development of a public work is called a contribution.
As the State benefits certain citizens with each public work (and not the entire population), the administration establishes contributions for the direct beneficiaries, who must finance, either totally or partially, the works.
There are different types of contribution. The direct tax (which weighs on people or goods), the indirect tax (which taxes specific acts of production, consumption or trade), the territorial tax (on goods of a rural or urban nature) and the war tax (imposed by the armies to the towns they occupy) are some of them.
A contribution can be a voluntary contribution of money.
Property Tax in Spain
In the case of Spain, it is common to use the term contribution to refer to the so-called Real Estate Tax (IBI). That is to say, it is the amount that every owner of a piece of land, whether rural or urban, must pay annually for it in the corresponding town hall of the municipal area where it is located.
To establish that amount that must be paid at the beginning of the year, factors such as the taxpayer, the type of tax, the tax base or the tax quota are taken into account. However, it must be taken into account that there are a series of exemptions from the payment of the tax receipt:
- Real estate belonging to the Catholic Church.
• Land routes that are free and in the public domain.
• Assets belonging to entities such as the Red Cross.
• Assets owned by the State, City Councils or Autonomous Communities, as well as consulates of foreign countries, those occupied by railway tracks or those classified as historical and of Cultural Interest.
Special contribution and voluntary contribution
We must not forget other uses that are also given to the term that now concerns us. Specifically, among the most interesting in this regard, it should be noted that there is talk of a special contribution to refer to the obligatory payment that all those people who, due to the start-up of public services or the performance of a series of public works, are benefited.
At a general level, a contribution is a contribution, be it to a person, a campaign, an organization, etc.: “The bishop asked people to make an effort to contribute in solidarity with those most in need”, “My contribution to this company It has been very big: I do not deserve to be treated this way.